Hivemapper, a Solana-based mapping project, has big ambitions. It wants to overtake Google Maps

The blockchain upstart says its crypto-based rewards system is central to its goal, because rewards create economic incentives necessary for the project's success.

Solana-based mapping project Hivemapper has set its sights on a goal that could put it in direct competition with Google Maps. But the blockchain upstart’s strategy hinges on crypto-based rewards, a key aspect of its project that some critics say is unsustainable.

According to data from Statista, Google Maps has over a billion monthly active users, making it the world’s biggest mapping service. Now, Hivemapper wants to take over.

The project’s mapping technology is powered by a network of contributors who use dashcams to collect road data. In exchange, they’re rewarded with Honey, Hivemapper’s cryptocurrency.

At the time of writing, Honey is valued at $104.9 million, placing it among the top 500 cryptocurrencies by market capitalisation, according to CoinGecko data.

But Hivemapper isn’t the only project offering crypto rewards. The mapping project belongs to a class of blockchain projects known as DePIN, short for decentralised physical infrastructure network.

DePIN projects try to offer an alternative to the Web2 companies whose services underpin the internet in sectors like mapping, computing, and wireless. Most DePIN projects offer token-based rewards.

However, critics say that token incentives alone don’t guarantee a project's longevity.

“Several newer DePIN protocols struggle to truly align economic incentives in a way that demands a token,” Chris Newhouse, a DeFi analyst at crypto trading firm Cumberland Labs, previously told DL News.

But Seidman argues that critics fail to understand the decentralised reward system that a project like Hivemapper uses.

The system works with multiple drivers submitting vehicle-generated mapping data for the same region, Seidman explained. The network then remaps and validates all that data in real time to provide “road intelligence” for companies.

“Hivemapper scales a self-regulating map ecosystem,” Seidman said.

“Trainers and drivers mint Honey rewards, and when a company purchases map data, it triggers a token burn, creating an equilibrium with incentives.”

In a recent report, asset-management giant Franklin Templeton highlighted Hivemapper as one of the early movers in the DePIN sector showing promise. But the report also noted lagging demand for its services.

“Hivemapper has had great success growing the number of contributors providing mapping data to the network, at over 60,000. However, the project has not seen the same relative growth in demand as on the supply side,” the report said.

Without significant demand for Hivemapper’s map data, contributors earning Honey tokens will only inflate the token’s supply.

As Kellen Blumberg, a data scientist at crypto platform Flipside, previously told DL News, “Incentives are helpful for attracting initial users, but sustainability is crucial.”

Honey’s token price is currently down 85% from its December peak.

But Seidman claims that Hivemapper has an edge over traditional rivals like Google Maps when it comes to cost.

Traditional mapping is expensive, which is why large applications like Google Maps have difficulty refreshing their maps on a global scale, he said.

“In contrast, Hivemapper dashcams cost only a few hundred dollars and can produce street-level imagery 20 to 100 times fresher than Google’s,” Seidman said.

Google didn’t immediately respond to a request for comment.

Osato Avan-Nomayo is our Nigeria-based DeFi correspondent. He covers DeFi and tech. To share tips or information about stories, please contact him at osato@dlnews.com